Nexus between renewable energy, technological innovation, and carbon dioxide emissions in Saudi Arabia

Abstract The Saudi Arabian economy has reported an unprecedented increase in growth rates over the last few decades. This growth has significantly increased the demand for non-renewable energy, leading to environmental risks. Renewable energy and technological innovation are the most effective instruments for reducing carbon dioxide (CO 2 ) emissions, decreasing energy consumption, and enhancing energy efficiency. This study aims to explore the effects of renewable energy and technological innovation on CO 2 emissions in Saudi Arabia over the period 1990–2023. To investigate this nexus, examine the long-run relationship, and determine causal connections, we employ the Autoregressive Distributed Lag model and the Vector Error Correction Model. The findings indicate that renewable energy and technological innovation help reduce CO 2 emissions in both the short run and long run, improving environmental quality. Furthermore, the study utilizes several control variables related to information and communication, revealing that internet and mobile phone usage help lower CO 2 emissions in both the short run and long run, thereby enhancing environmental quality. Nevertheless, the use of fixed telephones does not affect CO 2 emissions. Based on the empirical results, this study provides valuable insights for policymakers to enhance environmental quality.